Indian HDG export offers fail to turn into bookings in US

Indian export offers for hot dip galvanized (HDG) coils to the US have remained flat at around $835/mt CFR, with exporters failing to convert inquiries into substantial transactions, traders said on Tuesday, June 26.
 
"The Indian HDG export market has failed to get any cue as several buyers retreated from concluding transactions even though the number of inquiries improved during the past week," a Mumbai-based trader said.
 
"Most producer-exporters and traders are confused by the high inquiries and low transactions. There is speculation that either US buyers are cautious given their local market conditions or they pulled back awaiting a further fall in the rupee and higher discount offers from exporters," the trader added.
 
Some traders said that US steel mills are progressively increasing domestic flat steel prices and that US distributors are waiting for prices to stabilize before making new import commitments and this may have been a cause for their pause in the Indian market.
 
With buying interest from the Gulf market at a low ebb, Indian HDG exporters are expected to await market cues from the US before adjusting export offers downwards by another $5-10/mt in response to the weakening rupee in order to attract buyers, a Kolkata-based trader said.